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Arafura Resources director makes initial on-market share purchase

Non-executive director Mark Southey has demonstrated his confidence in the company’s magnet metals strategy.
Coins in a jar
A positive DFS has been delivered this week for the Nolans NdPr Project

Arafura Resources Limited (ASX:ARU) non-executive director Mark Southey has demonstrated his faith in the company’s magnet metals strategy with his first acquisition of shares.

Southey, who was appointed to the board a little over 12 months ago, has this week purchased 100,000 shares in an on-market transaction.

Final Investment Decision this year

This comes as the company advances towards a Final Investment Decision later this year at the Nolans Neodymium-Praseodymium (NdPr) Project in the Northern Territory.

During the transition to development Southey’s expertise is expected to be well utilised as he brings a wealth of mining, project realisation and technical experience.

READ: Arafura Resources’ Nolans NdPr Project is financially and technically robust

Earlier this week Arafura released the results of a definitive feasibility study (DFS) which showed the Nolans project is financially and technically robust and able to support a long-life operation.

The DFS highlights Nolans’ status as the next potential scale producer of NdPr oxide outside China.

It confirms Nolans as an ultra-low-cost producer sitting in the industry’s lowest cost quartile.

The project is forecast to generate an average of $377 million EBITDA per annum over a 23-year mine life.

Nolans will encompass a mine, process plant and related infrastructure to be constructed and located on-site.

This will be underpinned by a low-risk mineral resource that has the potential to supply a significant proportion of the world’s NdPr demand.

READ: Arafura Resources and Thor Mining confirm extensive tungsten mineralisation at Samarkand

A reserve of 19.2 million tonnes at 3.0% total rare earth oxide (TREO) and 13% phosphate was used in the DFS with an NdPr enrichment factor of 26.4%.

The project’s scale is expected to deliver significant economic and social benefits over many decades to central and northern Australia.

Peak construction workforce is estimated at 650, with a steady state operations workforce of 280.

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